Saturday, 17 December 2011

Back-up power

Ratcliffe-on-Soar Power Station

From Industrial Fuels and Power we learn that the UK has invited bidding for a UK-wide power back-up system - the system we need if we are to make a significant increase in wind and solar power.

The UK proposed to create a market-wide power capacity back-up system, operated by National Grid. The system would secure power supply at times of high demand and when generation levels fall from intermittent sources such as solar and wind.

The proposals intend to encourage plant developers to build new stations by offering a market system that seeks to generate stable revenue for operators through capacity auctions worth GBP2.88bn (US$4.44bn) until 2030, reports Reuters.

“The capacity market is designed to ensure sufficient reliable capacity is available to ensure security of electricity supply in times of system stress, for example during a cold, windless period,” the energy ministry said.

Power plant operators can bid to provide capacity through an auction in a given year, which will then commit them to deliver power at times of tight supply margins. If they fail to comply they will face penalties.

The cost of the auction system will be passed on to consumers’ energy bills, but the government expects increases to be 4% lower than a business-as-usual scenario.


rogerh said...

Short of cash Minister? - just kick the can down the road - a 'report' or a 'study' should do it. Lights go out - temporary and unforseen difficulty minister - nothing to worry about - usual guff - lessons learned etc. Security of supply built into a commercial contract Minister? Oh, dear, we didn't do 'commercial' at Balliol, know some chaps at Snoopers & Firebrand who are frightfully good - bit pricey though, still it's not our money. Oh, you know them? seat on the board eh and your missus an adviser, we'll keep that quiet for now.

I tried, but this is beyond parody.

A K Haart said...

rogerh - no quite beyond parody - I think yours was spot on.

Weekend Yachtsman said...

"...the government expects increases to be 4% lower than a business-as-usual..."

And pigs will shortly fly.

A K Haart said...

WY - I don't believe it either. I Wonder if anyone does?